The only flaw i can see here is that if people were generating their own power then how would these foreign owned fuel and power companies make their extortionate profits and how would the government tax the people generating and using the power, because they don't tax the foreign companies who currently get away with it, and take all of that money out of the UK economy !!And the same thing could apply for Farmers to produce their own Hydrogen for their vehicles. With Homes that are or are going to invest in Solar spare power could also do the same. Rather than the Government building 10 new nuclear reactors how about using that money to help homes insulate and generate thier own power independently of the grid ? Micro generation is an issue in that the big corporates (mainly owned by other countries) would loose money on this.
Again if there were conversion kits for ICE engines people would start to invest in the Hydrogen economy, its also better for the environment than scrapping all vehicles that are currently on the road and possibly a lot cheaper than converting an iCE vehicle to Batteries.